Company Presentation Presentation Company 2Q 2007 Results Results - PowerPoint PPT Presentation

Company Presentation Presentation Company 2Q 2007 Results Results 2Q 2007 August 2007 1

Company Overview 2

Landi Renzo – World Leader in CNG and LPG Alternative Fuel Systems Integrated Systems Producer Alternative Energy Focus Alternative Energy Focus Company Main Products Electronic Control Unit Switch Injector Rail Electronic Injector Rail Switch Filter Regulator Control Unit Regulator • “Ready-to-go” systems marketed through: – Car manufacturers (OEMs) - ca. 50 – Aftermarket through distributors and installers - ca. 750 3

World Leader, Top 3 Player in All Key Markets combined with Global Presence World Number 1 in a Fragmented Market Alternative Energy Focus Presence in the Key Markets in 2006 Alternative Energy Focus Market Size Country Position Market Share Landi (% of total) ~23% Italy #1 35% 7.5% #1 (CNG) na Germany 4.0% #2 (LPG) 12% Brazil #3 20% 8.9% Pakistan #1 49% 13.2% Russia #2 18% 12.1% Others ~ 77% GLOBAL #1 ~23% 100% The Global Market Global Presence with Local Footprint Alternative Energy Focus • Combined market share of top 3 around 50% • Large number of smaller players Assembly, Testing and Packaging Distribution – Compete on a local level – Italy Brazil Netherlands Less technologically advanced products Pakistan Poland – Focus on components, not systems Iran* China * Set up on going Source: Frost & Sullivan. Based on 2006A units sold 4

1H 2007 results 5

1H 2007 Highlights • 4.4% revenues growth to €74.7m (€71.6m in 1H 2006) • 10.3% Ebitda growth to €17.1m (€15.5m in 1H 2006) • 22.8% Ebitda margin (21.6% in 1H 2006) • € 47.3m Net Financial Position • Production started in Pakistan subsidiary in July 1H 2007 1H 2006 YoY Growth Eur ml 100,0% 100,0% Revenues 74,7 71,6 4,4% Revenues 22,8% 21,6% EBITDA Ebitda 17,1 15,5 10,3% 20,4% 19,7% EBIT 15,2 14,1 8,2% Ebit Note: IFRS. 6

Revenues Breakdown by segment Revenues by Segment � Volume growth on high value TOTAL 71.6 74.7 38.4 36.8 added products throughout the period + 4.4 % 3.2% � Strong increase in LPG segment 2.6% boosted by OEM partnerships and sales of high technology products 44.2% � CNG sales mainly driven by OEM 50.6% - 4.3 % partnership. Decreasing revenues on mature products 2.4% 3.3% � Company revenues increased more 50.4% 42.7% than 15% on OEM penetration (47%) versus AM compared to 1H 2006 52.6% 46.8% consolidating the company position 47.2% 54.0% in a fast growing segment 1H06 1H07 2Q06 2Q07 LPG (€m) CNG (€m) Other (€m) 7

Revenues Breakdown by geography Revenues by Geography Total 71.6 74.7 38.4 36.8 � 26% increase in Italian revenues on + 4.4 % 3.2% LPG segment; Company market 2.1% share in Italy rose from 29% to 34% 3.5% 6.2% 5.5% 6.2% � 2,2% increase in South West Asia revenues, mainly driven by Turkey 32.4% and Iran 33.1% - 4.3 % 1.8% � Increased revenues performance in 3.1% 5.5% 2.9% East Europe (+18,2%) with a slow 21.6% 7.5% 5.1% down of West Europe sales (-20,3%) 36.0% 31.4% 24.4% in particular driven by a temporary market reduction in Germany 23.4% 24.7% 33.7% 27.9% 34.1% 24.4% 1H06 1H07 2Q06 2Q07 Italy (€m) Europe (ex Italy) (€m) South-West Asia (€m) Rest of Asia (€m) America (€m) Other (€m) 8

Lean Cost Structure 1H 2007 Cost Structure Reconciliation to Net Income - % of Revenues 45.8% 100% 13.5% 8.8% 0.1% 9.0% 2.4% 0.5% 7.5% 40.7% 22.8% 20.4% +19.9% 12.4% s n g s l ) A A T t T s e t e e i e * s e s o n f A T T B e m n ( D & I e u t o c B i i x m e t r n I B P i r i r D T D r o n p u e B E a f P v o e u I c e m t o r h P T o T B t v c e s E n n n s a r r t u S O E I I c I e s e P B e R s f n t u o P l a e n y v r E n i I N o s G r c d e a C s n t n R M e a o u n N l S a r i F n G r t e e t N x E (*) net of other income 9

1H 2007 Ebitda Landi Renzo STRONG Ebitda % 3 % . 0 +10,3% increase in EBITDA, mainly driven by: 1 2 + . 0 1 + • pursuing of effective procurement strategies on electronic components 24.4% 22.8% 21.6% • cost reduction on external outsourced activities 21.1% 17,1 • improvement on productivity on 15,5 injectors manufacturing process 9,0 8,1 1H 2006 1H 2007 2Q 2006 2Q 2007 €m % Margin 10

1H 2007: Strong control on working capital and financial position Alternative Energy Focus Net Working Capital Alternative Energy Focus Net Financial Position � Net working capital increased � Net financial position reflects the mainly due to inventory and proceeds of the IPO receivables related to listing 21,4% 18,6% 18,2% 30,3 47,3 26,2 25,8 25.8 26.2 dic-06 mar-07 giu-07 dic-06 mar-07 giu-07 -4,2 -7,4 €m % of revenues €m Note: IFRS. 11

2007 strategic outlook 12

A clear path ahead DRIVING TOWARDS A CLEANER ENVIRONMENT: A HEALTHIER FUTURE Remain at the Forefront of Industry Innovation by Continuing Strong Investment in Research and Development Continue to Adapt Business Model to Further Improve Efficiency Exploit business opportunities in new and existing markets 13

A clear revenue growth roadmap for 2H 2007 PRINCIPAL JUDGED GROWING DRIVERS Increase of revenues in South West Asia driven by market expansion Increase of revenues in South America driven by market expansion in Brazil, Colombia and Peru and increased penetration in that area through new distributors introduction in AM segment Increase of revenues in West Europe driven by market expansion in Germany and increased penetration in that area through OEM partnership Increase of revenues in Rest of Asia driven by increased market penetration in Indian LPG segment and Chinese OEM segment 14

A clear EBITDA roadmap for 2H 2007 EBITDA margin expected in 2H 2007 will be in line with 1H 2007 results driven by Increasing in Sales Revenues will be larger than related increase on fixed cost Change on Geographical mix of revenues versus 1H largely compensated by manufacturing cost reduction due to: – Pakistani manufacturing facilities start up (July 2007) – Iranian manufacturing facilities start up (October 2007) – Continuous cost reduction mainly focused on electronic components and outsourced activities 15

Acquisition Approach Landi Renzo decision model: Line of external growth evaluated Increase of perimeter of supply Expansion in new market segment Increase penetration in existing market segment LR Planning to apply the model Analysis of Short list Target Price potential Evaluation Definition acquisition August 9th 2007 End 2007/1Q 2008 16

Annexes 17

Revenues Breakdown Revenues Breakdown for Segment and Region (EUR ml) 1H 2007 1H 2006 Growth 2Q 2007 2Q 2006 Growth Eur ml 52.6% 46.8% 54.0% 47.2% LPG 39.3 33.5 17.4% 19.9 18.1 9.5% Segment 44.2% 50.6% 42.7% 50.4% CNG 33.0 36.2 -8.8% 15.7 19.4 -18.7% 3.2% 2.6% 3.3% 2.4% Other 2.4 1.9 27.0% 1.2 1.0 26.5% Revenues 74.7 100.0% 71.6 100.0% 4.4% 36.8 100.0% 38.4 100.0% -4.3% 33.7% 27.9% 34.1% 24.4% Italy 25.2 20.0 26.2% 12.5 9.4 33.5% 21.6% 24.4% 23.4% 24.7% Europe (ex Italy) 16.1 17.5 -7.5% 8.6 9.5 -9.2% 32.4% 33.1% 31.4% 36.0% SW Asia 24.2 23.7 2.2% 11.5 13.8 -16.6% Region 5.5% 6.2% 5.1% 7.5% Rest of Asia 4.1 4.5 -7.6% 1.9 2.9 -35.1% 3.5% 6.2% 2.9% 5.5% America 2.6 4.5 -41.6% 1.1 2.1 -48.9% 3.2% 2.1% 3.1% 1.8% Other 2.4 1.5 59.0% 1.1 0.7 60.9% Revenues 74.7 100.0% 71.6 100.0% 4.4% 36.8 100.0% 38.4 100.0% -4.3% 18

Healthy Balance Sheet € m 1H 07 1Q 07 FY 2006 Cash & cash equivalent 56,5 12,9 9,8 Trade receivables 31,3 27,4 21,4 Inventory 35,2 31,7 32,2 Other receivables 9,7 8,1 7,6 Current Assets 132,8 80,1 70,9 Tangible assets 13,7 25,9 25,5 Intagible assets 5,6 5,3 4,7 Other fixed assets 2,3 1,2 1,3 Fixed Assets 21,6 32,5 31,5 Total Assets 154,4 112,6 102,3 Trade payables 38,3 31,6 27,6 Other liabilities 7,6 9,4 7,6 Current Liabilities 46,0 41,0 35,3 Total debt 9,2 17,1 17,2 Total Debt 9,2 17,1 17,2 Deferred tax liabilities 1,7 3,3 3,3 Severance fund 2,0 2,5 2,4 Other funds 0,1 0,6 0,6 Total Non Current Liabilities 3,9 6,4 6,3 Shareholder's Equity 95,1 47,9 43,4 Minorities 0,2 0,1 0,2 Total Equity 95,3 48,0 43,6 Total Liabilities & Equity 154,4 112,6 102,3 Net working capital 30,3 26,2 25,8 % on sales 21,4% 18,2% 18,6% Net invested capital 48,0 52,2 51,0 % on sales 33,8% 36,4% 36,7% Net financial position 47,3 (4,2) (7,4) Note: IFRS. 19